What is the "Uncategorized" Category and how does it apply to the Schedule C?

The "Uncategorized" category is what GoDaddy Bookkeeping uses when it can't guess what category a transaction belongs to. These transactions will need extra guidance from you to ensure that all items residing within the "Uncategorized" category get assigned to the correct category for tax and reporting purposes.

Everything categorized as "Uncategorized" will be EXCLUDED from the Schedule C worksheet. With a large amount of your expenses categorized as "Uncategorized," you could be under-reporting your deductions. The easiest way to determine what items have been assigned to this category is to run an expense report for the given time period and filter to only show items from the "Uncategorized" category.